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Day Trading Systems – 2 Things You Must Know to Survive And Win

The forex market is considered to be the largest trading post around the world Indeed, a great number of traders used different marketing techniques to earn money. The process is about buying and selling a stock on the same day. Day trading seems to be a tough competition since most traders watches the movement of trades every second or minute which is a crucial factor. Day trading is really a tough challenge to face, that’s why I’ll be providing you some pieces of advice to help you handle your trades using the right strategies for day trading.

The Proper Timeframe to Trade

Since the forex market operates the whole day, every trader will encounter difficulty determining the flow of market and to identify which suitable response to take. Time is an important factor when it comes to trading currency pairs. I would recommend that you consider the 10 minute time frame but the results would be dependent on the system that you’re using. Once you’re familiar with your system, you’ll surely know when the best time to trade.

Like for instance, if the price does not seem to blend on your trading system( rare systems), the range between 3-5 minutes will likely suit fast time frames. For instance, if you’re engage to trading with systems such as grid trading and hedging. When you trade on a fast pace movement, this can have two results- either you gain money or lose everything.

In addition, the price and any technical analysis are no longer important in fast time frames. On the other hand, if you’re using a system that utilizes technical analysis, you’ll definitely want to go with a slower time frame. Moreover, you need to let your system fit in. I’d recommend the 30 minute chart.

I want to emphasize that it you may have the option to go bigger or smaller, this would depend on your system. For instance, the Fibonacci retracements who fits in a 15 minute chart. Thus, you need to grasp every inch of detail about your system so that you would identify which is the appropriate time to trade.

The Right Time to Trade for Individual Currency Pairs

If you want to figure out the best time to trade individual currency pairs, well you need to be familiar with on the geographical location and macroeconomic factors. Once you’ll familiar on particular time for its peak, then you can surely hit the profits. Let’s take forex trading in Asia as an example, particularly (Tokyo 7P.M.-4 A.M. EST). One of the market giants in forex is Tokyo, no wonder it has been competitive through the years when it comes to trading individual currency pairs.

If you’re target is 90 pips, a good choice of currency pairs would be USD/JPY, GBP/JPY and GBP/CHF. This is the real picture so it is suggested that you gather up relevant information for you to formulate the best strategies for day trading.

Tons of day trading strategies are available in the market though you need to keep in mind that the result would rely on how you handle your system effectively.

How Can You Survive Food Inflation

There is no doubt that inflation has been hitting every sector of the United States economy.  This means basic commodity prices are going up at an alarming level.  Food inflation for example is particularly debilitating for most Americans.  As the common folks see their money lose value due to hyperinflation, more and more commodities become out of reach which could lead to hunger, malnutrition, and more crisis.  You can survive this crisis by sharing in the growth of agriculture and looking for alternative real currencies such as silver or gold.  

Food inflation means higher prices of agricultural products.  This spells trouble for non-agricultural producers but signals unprecedented growth for the ordinary American farmer.  Agricultural products, like silver and gold, have intrinsic natural values.  That is because people will not stop to eat no matter if the inflation goes hyper.  People around the world will keep on eating food even if there is a global crisis.  So if you can shift your focus to agricultural production, you can ensure a steady food supply in your home and you can enjoy the windfall of food inflation.  Because agricultural products have high prices, you can certainly enjoy big profits from them. 

The Federal government therefore should not focus on providing bailout money to irresponsible financial institutions and the money market.  In the first place, these banks, fund managements, and lending companies are responsible for the current mess created by the financial crisis.  These institutions abused the money market by speculating on high leveraged finance investments.  Because the paper money economy in itself does not produce value, it is bound to collapse once it reached a saturation point.  The onset of the financial crisis is a reversal that seeks to correct the abuses created by banks.  However, instead of letting market forces correct itself, the Federal Reserve and the US Treasury Department started exposing the economy to hyperinflationary threats by buying back unsupported assets and toxic debts. 

There is a growing penchant today to print more money to fund bailout initiatives and propel stimulus packages.  Such economic direction is practically a suicide path as the infusion of more money in the economy tends to hyper inflate the prices of commodities and services.  What the Federal government should do is to go back to basics.  This means focusing on agricultural production and increasing productivity and food security.  The Fed should also refrain from arbitrarily printing fiat currency as this could further weaken the dollar which could lead to its collapse as the international reserve standard.  Currencies therefore should be backed by silver and gold again in order to reflect the real value of paper money. 

There is no end in sight for the current crisis because authorities are taking the wrong economic medication.  The only way out to curb hyperinflation is to focus on agricultural production to drastically stop food inflation.  Governments as well as individual investors should also heavily invest on silver and gold in order to create real value for the economy which could arrest the spiraling inflation.